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- The contribution margin income statement allows users to easily judge the impact of a change in <u>selling price, cost, or volume</u> on profit.
The contribution margin income statement is an evaluation of a former sales period. Entrepreneurs use this procedure to determine whether they made a profit or loss during the period.
After their evaluation, they realize the operating income or net income. The contribution margin is generated using this formula,
Net product revenue - Total variable cost ÷ product revenue.
A proper understanding of the fixed and variable costs is essential to accurately calculate the contribution margin.
Learn more here:
brainly.com/question/24596251
Answer:
B. Sell government securities to prevent the expansion of the money supply.
Explanation:
- The federal reserve can expand the money supply by modifying the money supply and refers to the amounts of the finds the banks must hold against the deposits and thus by allowing the reserves needs the banks are able to load more money and increases the supply in the economy. Thus by selling the securities the banks can control the supply and interest rates and is called an open market.
<span>A business becoming incorporated is an example of risk management.</span>
When a business becomes incorporated it is trying to protect the assets of the company. By assessing and making a risk management decision to become incorporated they are protecting themselves and the company as a whole.